Financial Performance - For the six months ended June 30, 2022, the Group's revenue amounted to HK$246.1 million, a 47.8% increase compared to HK$166.5 million in the same period of 2021[12]. - Gross profit for the same period reached HK$34.4 million, representing a 43.9% increase from HK$23.9 million in 2021[12]. - Profit attributable to equity holders was HK$3.9 million, a turnaround from a loss of HK$2.8 million in 2021[12]. - Basic and diluted earnings per share were both 0.47 HK cents, compared to a loss per share of 0.34 HK cents in the previous year[12]. - Total comprehensive income attributable to equity holders for the period was HK$3,813,000, compared to a total comprehensive expense of HK$2,296,000 in 2021[97]. - Profit before taxation for the period was HK$3,883,000, a significant turnaround from a loss of HK$2,772,000 in the previous year[92]. - Earnings attributable to equity holders of the Group for the six months ended June 30, 2022, were HK$3,883,000, compared to a loss of HK$2,772,000 in the same period of 2021[155]. Segment Performance - The garment manufacturing and trading segment contributed 85.8% of segment revenue, amounting to HK$211.5 million, up from HK$141.9 million in 2021[17]. - The garment manufacturing and trading segment achieved a revenue of HK$241.63 million for the six months ended June 30, 2022, representing a growth of 47.8% compared to HK$166.5 million in 2021[21]. - The segment recorded a profit of HK$10.9 million for the period, compared to HK$4.2 million in 2021[19]. - Reportable segment profit for garment manufacturing and trading was HK$10,899,000, compared to a loss of HK$3,094,000 in the previous year[140]. Cost and Expenses - The gross profit margin slightly decreased to 14.0%, down from 14.3% in the previous year due to increased costs of raw materials[19]. - Administrative and other operating expenses increased by 17.2% to HK$27.2 million in 2022, up from HK$23.2 million in 2021, primarily due to additional employee remuneration[26]. - The company incurred finance expenses of HK$1,722,000, up from HK$667,000 in the previous year, reflecting increased borrowing costs[92]. Investment and Strategy - The Group continues to adopt a conservative investment strategy in its securities investment business amid market volatility[11]. - The company plans to expand production in Cambodia and Indonesia to enhance overall production capacity and profitability while mitigating risks from Sino-US tensions[59][63]. - The company will maintain a cautious approach to its securities investment business due to expected volatility in equity markets amid concerns over hyperinflation and potential recession[60][63]. Liquidity and Financial Position - The current ratio improved to 2.2 as of June 30, 2022, compared to 1.7 at the end of 2021, indicating a stronger liquidity position[35]. - Bank borrowings decreased to HK$17.7 million as of June 30, 2022, from HK$65.0 million at the end of 2021, with loans denominated in Euro[36]. - Cash and cash equivalents at the end of the period were HK$45,280,000, down from HK$50,182,000 at the end of June 2021[99]. - Current assets decreased to HK$169,835,000 from HK$209,465,000 at the end of December 2021, primarily due to a reduction in cash and bank balances[94]. - Net current assets increased to HK$90,867,000 from HK$85,630,000 at the end of December 2021[96]. Employee and Operational Metrics - The Group employed 519 full-time employees as of June 30, 2022, an increase from 491 employees at the end of 2021[48]. - Short-term benefits for key management personnel decreased to HK$985,000 in the first half of 2022 from HK$1,376,000 in the same period of 2021[172]. Compliance and Governance - The Company has complied with all provisions of the Corporate Governance Code except for the separation of the roles of chairman and chief executive, which are held by Mr. Li Haifeng since April 1, 2017[86]. - The Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2022[84]. - The Company has adopted a code of conduct for directors' securities transactions, which meets the standards set out in the Model Code[87]. Market and Economic Conditions - The Group's garment manufacturing and trading business has shown resilience despite challenges posed by the COVID-19 pandemic and global inflation[16]. - The garment business has seen significant improvement, with sales volume exceeding pre-pandemic levels, although the second half of 2022 is expected to remain challenging due to rising raw material and logistics costs[56][58]. Shareholder Information - As of June 30, 2022, Mr. Li Haifeng holds a total of 404,944,690 shares through Dragon Peace Limited, representing 49.50% of the issued share capital[74]. - Mr. Li Haifeng is also a beneficial owner of 9,664,706 shares, which accounts for 1.18% of the issued share capital[74]. - The number of issued and fully paid shares remained constant at 818,042,000 shares throughout the reporting period[165].
恒富控股(00643) - 2022 - 中期财报